TAX groups have broadly welcomed the Budget, but last night several of them criticised various aspects of it.

The Institute of Taxation said that it was disappointed that the Budget contained no specific provisions for employers to increase employment. The institute, however, welcomed the additional tax allowances and the reduction in standard rates of income and corporation tax but added: "The institute feels that the Minister could have achieved more by an imaginative use of available funds."

The Institute of Certified Public Accountants welcomed the reduction in corporation tax for companies with profits of up to £59,900 and said: "It is a further initiative which will allow SMEs to reinvest and develop their business and should contribute to increased employment within the sector."

The institute welcomed the reduction in employee PRSI but expressed concern "at the opportunity missed by the Minister to reduce employers' PRSI contributions.

The Institute of Chartered Accountants in Ireland said that while it welcomed the tax reductions in the Budget, not enough had been done to support business, and the tax system was still too complicated and burdensome for many businesses.

It said the proposed extension of the BES incentives to the developing companies market of the Stock Exchange would be of limited effect unless a lot of companies moved in this direction.

"Tax disadvantages of Ireland as a nation for headquarters of international companies need to be rectified," it said. "We hope the opportunities of the Finance Bill will be taken to encourage companies with job creation potential to locate their headquarters here."